Wolverine World Wide Inc (WWW)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 179,000 | 160,400 | 176,500 | 116,200 | 131,500 | 136,400 | 149,300 | 149,600 | 161,700 | 183,600 | 345,800 | 364,800 | 347,400 | 342,000 | 422,600 | 472,600 | 180,600 | 125,200 | 116,500 | 80,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | -30,200 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 230,800 | 272,000 | 241,500 | — | 241,700 | 440,000 | 420,000 | 370,600 | 319,600 | 362,600 | 372,000 | 323,600 | 268,300 | 332,100 | 263,800 | 323,400 | 331,200 | 357,300 | 363,700 | 375,500 |
| Total current liabilities | US$ in thousands | 869,400 | 851,700 | 964,200 | 1,035,900 | 1,110,300 | 1,331,300 | 1,094,700 | 967,400 | 759,600 | 852,100 | 522,900 | 497,800 | 406,000 | 560,000 | 676,400 | 1,119,700 | 787,400 | 833,900 | 744,900 | 592,100 |
| Quick ratio | 0.47 | 0.51 | 0.43 | 0.11 | 0.34 | 0.43 | 0.52 | 0.54 | 0.59 | 0.64 | 1.37 | 1.38 | 1.52 | 1.20 | 1.01 | 0.71 | 0.65 | 0.58 | 0.64 | 0.77 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($179,000K
+ $—K
+ $230,800K)
÷ $869,400K
= 0.47
The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current liabilities with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term obligations.
Based on the data provided, Wolverine World Wide Inc's quick ratio has shown significant fluctuation over the past few quarters. In the most recent period, as of December 31, 2023, the quick ratio stood at 0.47, indicating that the company may face challenges in meeting its short-term financial obligations with its most liquid assets.
It is noteworthy that the quick ratio improved steadily from the first quarter of 2021 to the second quarter of 2022, reaching levels above 1, which suggested the company had ample liquid assets to cover its short-term liabilities during that period.
However, the quick ratio has since declined, with a sharp decrease in the first quarter of 2023 to 0.11, before recovering slightly in subsequent quarters but remaining below 1. This downward trend in the quick ratio raises concerns about the company's liquidity position and ability to meet its short-term obligations.
Further analysis and monitoring of Wolverine World Wide Inc's liquidity management and working capital efficiency would be advisable to understand the reasons behind the fluctuations in the quick ratio and to assess the company's overall financial health in the short term.
Peer comparison
Dec 31, 2023